Liquid network recovers 3,400 BTC after on‑chain talks, white hats retain 598.5 BTC
Liquid network receives 3,400 BTC back
On September 7, a group of “white‑hat” actors returned 3,400 Bitcoin (BTC) to the Liquid Network federation wallet after a series of on‑chain messages. The same actors kept 598.5 BTC, which they described as a bounty fee.
Key points
- 3,400 BTC were sent to the Liquid peg script address at 16:09 UTC.
- 598.5 BTC (about 15 % of the total) remained with the white‑hat address as change.
- The transaction is identified as bc49a46d.
- On‑chain messages between the white hats and a Blockstream‑linked address discussed fixing a bug before the funds were returned.
On‑chain negotiation details
The white hats first posted a transaction with an OP_RETURN field saying “contact us on chain.” A Blockstream‑linked address replied with an email address and later sent encrypted payloads and PGP‑signed messages. In block 965869 the white hats asked whether sending most of the funds back was acceptable. Blockstream later confirmed that bridge nodes were patched and it was safe to return the money.
Confirmed facts
- The 3,400 BTC return transaction (bc49a46d) was confirmed at 16:09 UTC on September 7.
- The 598.5 BTC change was sent back to the white‑hat address.
- Messages were exchanged on‑chain using OP_RETURN data and encrypted payloads.
Unclear aspects
Blockstream has not publicly explained the size of the 598.5 BTC bounty, and the encrypted messages have not been disclosed. It is unclear whether any further negotiations will take place.
Why it matters
The episode shows how on‑chain communication can be used to coordinate a response to a security incident without moving funds through traditional off‑chain channels. It also highlights the potential for “white‑hat” actors to return stolen or misdirected funds while retaining a finder’s fee.
